This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company’s monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
Investors are paid a very solid 4.43% distribution. The $87 Goldman Sachs price target on Realty Income stock is well above the $77.25 consensus figure and the $67.45 per share close on Tuesday.
SL Green Realty
Many Wall Street analysts are very positive on this leading large-cap office REIT. SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, is a fully integrated REIT focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.
As of December 31, 2020, it held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
SL Green also participates in mezzanine lending to commercial real estate through its wholly owned structured finance portfolio and recently delivered One Vanderbilt, a 1.7 million square foot office tower uniquely located adjacent to Grand Central. The company recently reported that IBM has signed a 16-year lease for 328,000 square feet of office space at One Madison Avenue in Manhattan. More than 500,000 square feet of space will be added to the building’s 900,000 square feet in a new tower that is slated for completion in November of 2023, according to a statement.
Investors receive a 4.54% distribution. The Truist Financial target price is $92.75, and the consensus target is just $83.80. SL Green Realty stock closed on Tuesday at $80.57.
This strong industrial REIT play offers solid upside potential. Stag Industrial Inc. (NYSE: STAG) is a self-managed full-service real estate company primarily focused on the acquisition, ownership and management of single-tenant, Class B warehouses in secondary markets across the United States. The company continues to focus on expansion of its acquisition platform to find acquisitions to grow the portfolio.
Top Wall Street analysts expect management to be aggressive acquirers over time. Additionally, the in-place portfolio should deliver stable organic growth supported by healthy property-level fundamentals.
Investors receive a 3.55% distribution. Raymond James has set a $47 price objective, while the consensus target is $47.90. The closing share price on Tuesday was $41.03.
These five top companies pay dependable distributions. With the stock market still horribly overbought, inflation posting some of the biggest jumps in 40 years, and interest rates moving off generational lows, moving capital to hard assets now makes a ton of sense. Investors should remember that REIT distribution may contain return of principal.